DUBAI, United Arab Emirates, Aug. 10 /Xinhua-PRNewswire/ -- Istithmar, the leading Dubai based private equity and alternative investment house successfully reached agreement to acquire luxury retailer chain Barneys New York, at a final purchase price of US$942.3 million, after negotiations came to a close yesterday.
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In a statement issued today, H. E. Sultan Ahmed Bin Sulayem, Executive Chairman of Istithmar said, "We are excited to acquire Barneys New York. Barneys is a unique global asset with incredible growth prospects within the luxury market. We look forward to working with Barneys as both a financial and strategic partner. We intend to grow the company in the US and in international markets."
Elaborating on the transaction, Khaled Al Kamda, Vice Chairman of Istithmar World, commented, "This investment will accelerate the growth of Barneys' business by leveraging Istithmar's experience in the sector and other investments worldwide."
David Jackson, CEO of Istithmar said, "Securing Barneys is indeed a major win for Istithmar: boosting the brand strength of our retail portfolio, while creating opportunities to maximize its value through the team's strategic plans to enter new markets. Right from the start, we have embraced a laser-sharp focus on this deal. Barneys is a quintessential brand, and we see immense growth potential which we are confident of realizing in the long-term."
Peter J Solomon Co. and Citigroup acted as M&A advisors to Istithmar, Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Istithmar, KPMG provided financial and tax advisory services and McKinsey acted as strategic consultant. Citigroup is providing committed financing for the acquisition.
About Istithmar:
Istithmar is a private equity and alternative investment house headquartered in Dubai, the United Arab Emirates, with offices in Shanghai and New York. Established in 2003, it is 100% owned by Dubai World which in turn is wholly owned by the Government of Dubai. In the three years since its inception, Istithmar has invested in over 30 companies in three sectors -- consumer, industrial and financial services - deploying in excess of $1.6 billion of capital. Istithmar's 'I' Investment Philosophy is based around three core principles -- Ideas, Inquiry and Integrity - and is the foundation on which the firm has established a broad portfolio of highly successful investments in the markets from North America and Europe to Asia and the Middle East.
